What is Corporate Reputation Management? It involves an organization managing and shaping of how the organization is understood by its customers and its stakeholders, competitors, and employees and the public as well. Reputation is a company’s greatest asset, affecting customer loyalty and employee satisfaction—and ultimately even financial performance.
What is Corporate Reputation Management in practice? Reputation management is working to build a more positive perception or image and responding to criticisms or addressing crisis situations. Whether by delivering a high standard of customer service, being an honest and forthcoming communicator, or embracing robust ethical practices, corporate reputation management is an imperative to long-term business success.
Why Your Corporate Reputation Matters
Reputation is what people say about you when you’re not in the room. Reputation is something that can take years to establish, but with the level of transparency and speed of digital interaction, today’s audiences demand, it can be broken in mere moments.
1. Builds Trust and Credibility
A positive name and reputation breed confidence in shareholders and clients. People are more likely to purchase from, invest in, or partner with a business they trust. For one, research such as Edelman’s Trust Barometer shows that 81% of consumers feel that trust in a brand is a deal breaker or a deciding factor when making a purchase.
2. Enhances Customer Loyalty
When companies develop a solid reputation, they will keep customers for the long haul. And loyal customers often engage in contagious, positive word-of-mouth, which can make them incredibly powerful brand advocates.
3. Top Talent Elasticities
We also expect that precisely those groups whose top talent is in lower supply will offer more and less of the other group. People like to work for organizations with good reputations. According to a study by Corporate Responsibility Magazine, 92% of job seekers would be willing to leave their current company if offered a position with a more favorable company.
4. Boosts Financial Performance
A reputation for investors and stakeholders is a sign of stability and credibility. Companies with such positive reputations usually find it easier to secure capital and stock market value.
5. Prepares You to Respond to a Crisis
None are immune to setbacks—whether public scandals, product recalls, or social media pile-ons. A good reputation provides your business with a buffer when these problems arise, as people are more willing to forgive a business they view favorably.
The 5 Keys to Corporate Reputation Management
So now that we know how important reputation is, how can businesses actively work to control and enhance their reputations? Here are some essential tips so that you can get started.
1. Monitor Your Online Presence
Because most interactions occur online, on social media, forums, review sites and elsewhere, it is essential to track your digital footprint. Leverage applications such as Google Alerts, Brand24, Hootsuite to monitor your brand mentions and take actions as soon as they are made.
Example: If a customer leaves a negative review on Yelp, a timely and professional response may be enough to right the ship and win over the public’s trust.
2. Communicate Clearly and Openly
Transparency leads to more trust, and businesses that aren’t afraid to show their work, express their ambitions, and share what they’re struggling with will do better with a wider audience. Post about company initiatives. Apologize when appropriate mistakes are made and step in with solutions rapidly.
Example: If there’s a data breach, companies such as Apple will issue clear, timely statements that alert consumers to the problem and detail the response.
3. Offer Excellent Customer Service
Good customer service is one of the simplest means of promoting a favourable image. Educate staff on how to respond to customer inquiries and how to handle complaints appropriately.
Example: Zappos is famous for its customer service. By treating each customer and the back and if it was our property we are able to stay in business for 20 years.
4. Leverage Thought Leadership
Establish your brand as an authority in the industry by serving your audience content that delivers expertise, insight, and innovative solutions. Write Informative Blog Posts, Whitepapers, or Webinars for Establishing Authority In an Online Business.
5. Corporate Social Responsibility (CSR) Achievements and Assistance
There is a growing appreciation for companies that represent more than profit alone. Another is that by getting involved in CSR, such as by participating in sustainable practices or working on community projects, you build a reputation as a company that acts responsibly towards the world and the people in it.
Example: TOMS Shoes itself has established a strong brand by giving away when you buy one pair of shoes, a pair is given to a kid in need, saying not only are we distilling this responsibility, but they are also a business.
Promote Employee Advocacy On a Positive Note
Your employees are your ambassadors of reputation. Happy, motivated staffers are more likely to spread the word about your brand and efforts online and to their friends and family, organically boosting your reputation.
Tip: Give employees opportunities for expansion and praise them publicly for their accomplishments.
Prepare for Crisis Management
No reputation is strong enough that it never has to face challenges. Have a disaster plan in place that includes established lines of communication, contact information, and a game plan to mitigate public outcry.
Example: The crisis management case by Tylenol in 1982 is said to a be a textbook case. They were able to restore confidence with their consumers by putting public safety ahead of all else and recalling their products.
Creating Corporate Reputation in the Digital Age
Corporations and their reputations in the Internet age bring their own set of opportunities and threats. The rise of social media, online reviews, and the instant news cycle makes your reputation more fragile and more powerful than ever before.
Dealing With Online Challenges
Negative Reviews
Maria Couldn’t Fall In Order to Throw Up Gracefully
Reply to unhappy customers with kindness and consideration. Demonstrate that you appreciate their feedback and want to help solve their problems.
Proactive Social Media Use
Late to the Social Media Game?
Don’t only reply to adverse remarks. When you get positive feedback, thank customers and share user-generated content to create a following.
Highlight Positive Press
Publish your most glowing customer testimonials, awards, or other positive coverage on your website and in social media to further build positive perceptions.
Places to Feature Your Brand
Leverage social media channels, including LinkedIn and Twitter to inspire interest around stories of employees, product breakthroughs, and community programs.
Until eligibility for large public events resumes in your jurisdiction, host online events or Q&As to virtually connect with your followers.
How to Bring Your Corporate Reputation Management to the Next Level
Managing reputation is not only about repair, it is about building trust, building engagement, and building love for the brand continually. If you’re ready to take action to establish a more durable, resilient reputation, you can begin by assessing where your brand is now.
Action Steps:
- Take stock of what you have online and any holes or deficiencies that you see.
- Educate and train staff about the value of reputation and what they can do to help to build a good one.
- Create and implement a full reputation management plan that is specific to your company.
Businesses that view reputation management as a top strategic goal are typically ahead of the competition in terms of customer loyalty, growth, and weathering the storm during decline.
You can also read this post: How to Improve Reputation Management: A Complete Guide
